Food Business News - August 26, 2014 - (Page 19)

back to a more normal range." Mr. Moskow said dairy farmers should fare reasonably well in the falling milk price environment, insulated by the large prospective corn crop and the steep drop in feed costs. Big picture dairy industry fundamentals explain Mr. Moskow's long-term skepticism, he said. "We believe that declining domestic demand for milk, excess industry capacity, long-term demand for exports and declining bargaining power with customers will continue to challenge the Dean business," Mr. Moskow said. "The company has made significant progress toward reducing its cost structure ($80 million to $100 million per year) through manufacturing consolidation, overhead reductions and logistics productivity to offset these challenges. It remains to be seen whether these improvements will result in a more sustainable pattern of margins for Dean." The expectation of improved results in the medium term is not without hazards, Mr. Moskow said. Noting it is always risky to predict the direction of commodity prices, Mr. Moskow said a recovery in the share price of Dean Foods also could be undone if the company's capacity utilization is not strong enough. "There have been years in the past where Dean has been forced to sacrifice its margin structure to outbid competition for private label business," Mr. Moskow said. "That said, our analysis indicates that Dean's profit margins expanded in three of the past four years where Class I prices fell." Share prices of Dean Foods on the New York Stock Exchange closed Aug. 11 after the earnings were released at $15.20 per share, a rally from the low of $14.19 during the trading session. The close was down 29% from the 52-week high of $21.46. FBN Big Lots ramps up food offerings COLUMBUS COLUMBUS, OHIO - Big Lots, Inc., North Bi L t I N th America's largest broad line closeout retailer operating 1,491 stores in 48 states, is expanding its food offerings. The retailer, which earlier this year signed on to become the official "thrift store outlet" for Hostess Brands, L.L.C., now will feature more brand name products, as well as improved product arrangement and signs to make shopping easier. According to Big Lots, the retailer's food department will continue to have a "significant" closeout presence, but the company is doubling its everyday selection of brands. New brands that now may be found at Big Lots include: Kraft Macaroni & Cheese, Mike & Ike, Life Savers, Nutella, Miracle Whip, A.1. Sauce, Velveeta, Smucker's, Duncan Hines and Pillsbury. "Our business has always been based on the needs of our customer (nicknamed "Jennifer"), and bringing her amazing values on great brands and products she loves," said Andy Stein, chief customer officer. "This is just another way we are building on our August 26, 2014 promise of surprises in every aisle, every day." The international food assortment also has grown in both size and scope. Now called World Flavors, it is a more diverse set of products and brands, Big Lots said. Each store now will carry a selection of European, Hispanic and Asian foods. "This expansion helps our customer find more of her favorite items and brands when shopping the Big Lots food department," said Trey Johnson, senior vice-president and general merchandise manager. "Shoppers will appreciate the new look, easy navigation and the expanded variety of products at amazing values. These new changes allow 'Jennifer' to find more of what she needs at the exceptional values that she expects when shopping at Big Lots." In a June 26 corporate analysts meeting, Rich Chene, executive vice-president and chief merchandising officer, said food accounts for approximately 30% of Big Lots total business. At that time, he pointed out one of the elements of Big Lots "Edit to Amplify" strategy would be to give more real estate to food and consumables. "We have done some good category gap analysis," Mr. Chene said. "Because of our strong relationship with the vendors, they have been very good with information. We actually ran a test in 2013 on the urban stores to understand what items, and from that we have made decisions on what branded product as well as what private label product is going to be expanded in our stores. And this, again, is all part of the benefit of something called 'Edit to Amplify.'" FBN ingredients custom blends innovation national distribution B.C. Williams Bakery Service BCW Food Products 1-800-527-4104 bcwilliams.com FOODBUSINESS NEWS ® 19 http://www.bcwilliams.com

Table of Contents for the Digital Edition of Food Business News - August 26, 2014

Food Business News - August 26, 2014
Wal-Mart in effort to be even more price competitive
Coca-Cola Co., Monster Beverage enter energy drink deal
Beverage Business News - Blending innovation in the juice segment
Table of Contents
Web Contents
Editorial - Social progress tied to diet
Wal-Mart in effort to be even more price competitive
Nestle to implement animal welfare standards
TreeHouse ahead on Keurig 2.0 product
Kraft, McDonald’s going forward with McCafé partnership
Gary Rodkin to retire from ConAgra Foods
Pinnacle Foods moving past Hillshire ‘distraction’
Displays, distribution propel Hostess cakes, rival says
Popcorn has global possibilities
TreeHouse Foods eyeing private label organic, natural category
Big Lots ramps up food offerings
Market Insight - Beef's simmering troubles
Washington - Transportation proposal under scrutiny
Ingredient Innovations - Rallying around omega-3
Oil blend with omega-3s offers stability
Health and Wellness - Better living through nutrition
New Food Products
Ingredient Market Trends - Canadian crop forecasts at ‘more normal levels’
Ingredient Markets
Supplier Innovations and News
Classifieds
Marketplace
Ad Index
Food Business in the News

Food Business News - August 26, 2014

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